effective rate
rate of interest paid on a loan, or earned on an interest-bearing deposit, as distinguished from the nominal interest rate . In a bank loan, it is the Annual Percentage Rate (APR) .
effective rate - Related Articles
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Annual effective rate
An annual effective rate (AER) is an interest rate that takes into account the effects of compounding.
EFFECTIVE RATE - the actual yield of interest as opposed to the stated rate. For deposits, the effectiv...
EFFECTIVE RATE OR COST - When you are quoted an APR, the total amount of that APR is calculated assumin...
Effective Rate
Yield on a debt instrument that is calculated by using the purchase price, the coupon rate, the number of days between interest payments, and the length of time until maturity.
Effective Rate of Protection. The overall effect of a nation's tariff system on a specific domestic product, after taking into account the impact of trade restrictions on the industry's inputs.
Effective rate of tariff - The tax charged on any imported commodity expressed as a percentage of the value added by the exporting industry.
Effective rate
A measure of the time value of money that fully reflects the effects of compounding.
Effective yield ...
Effective rate
A term used in two ways. In one context it refers to a measure of interest cost to the borrower that is identical to the APR except that it is calculated over the time horizon specified by the borrower.
An effective rate per period multiplied by the number of periods in a year.
Similar financial terms
Nominal price
Price quotations on futures for a period in which no actual trading took place.
Effective Rate was abolished, along with daily minidevaluations. Peso fixed. A
8000
Restrictions on all capital inflows, except short-term, removed.a ...
Effective Rate (finance term)
DMFAS
Great American Management and Investment, Inc.
An effective rate per period multiplied by the number of periods in a year.
Nominal cash flow
A cash flow expressed in nominal terms if the actual dollars to be received or paid out are given.
An effective rate per period multiplied by the number of periods in a year. Same as annual percentage rate.
Nominal cash flow
A cash flow expressed in nominal terms if the actual dollars to be received or paid out are given.
Nominal dollars ...
The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; however, because interest expense is deductible, the after-tax cost is seen most often.
Your effective rate will always be lower than your marginal tax rate, which is the rate you pay on the income that falls into the highest tax bracket you reach.
The effective rate is the annual interest rate after adjusting for the effect of compounding.
Compound interest is interest on interest. The more frequent the compounding, the higher the interest.
ERIC - Effective Rate of Interest plus Costs.
Establishment fee - a fee charged for setting up your loan account.
ETIA - Early Termination Interest Adjustments.
Narrowly defined effective rate
NDF
Nordic development fund (Nordiska Utvecklingsfonden) ...
Measured by the effective rate of protection.
Effective protective rate
Same as effective rate of protection.
Effective rate of protection ...
effective rate The yield on a debt as calculated from the purchase price. A more accurate measure... effective tax rate The actual income tax paid divided by net taxable income before taxes, expressed as a percentage.
Yield The percentage rate of return paid on a stock in the form of dividends, or the effective rate of interest paid on a bond or note.
Effective rate A debt security's yield calculated from the purchase price. Employee stock ownership plan (ESOP) A company contributes to a trust fund that buys stocks on behalf of employees.
It is an expression of the effective rate of interest that will have to be paid on a loan. It is taken as a percentage and calculated as a yearly rate.
You find your annual effective rate by dividing the tax you paid in the year by your taxable income for the year.
Social Security pension paid to a nonresident alien is taxable at the rate of 30% (for an effective rate of tax of 25.5%). The Social Security Administration withholds 25.5% federal income tax on U.S.
Annual Percentage Rate: The effective rate of interest on a loan assuming a one-year time period. This is the interest rate that is disclosed to borrowers for comparison with credit offered by other lenders.
Interest Rate
The monthly effective rate paid (or received if you are a creditor) on borrowed money. Expressed as a percentage of the sum borrowed.
Notes:
Borrowing $1,000 at a 6% interest rate means that you would pay $60 in interest.
Nominal annual rate
An effective rate per period multiplied by the number of periods in a year. Same as annual percentage rate.
Nominal cash flow
A cash flow expressed in nominal terms if the actual dollars to be received or paid out are given.
Effective annual rate: this reflects the effective rate as if annual compounding were applied: in other words it is the total accumulated interest that would be payable up to the end of one year, divided by the principal.
The yield on a debt instrument calculated from the purchase price. The effective rate on a bond is determined by the price, coupon rate, time until maturity and time between interest payments.
EFFECTIVE DATE ...
Nominal annual rate
Definition: [crh] An effective rate per period multiplied by the number of periods in a year. Same as annual percentage rate.
Yield - The effective real rate of interest paid on a savings account or CD. The effective rate (yield) increases as the frequency of compounding of interest increases.
The returns earned on a stock or a bond, as per the effective rate of interest on the effective date, is called as a yield in the banking terms.
Yield Curve Risk ...
Nominal Rate: A stated rate which is usually subdivided for compounding purposes, resulting in a higher effective rate.
Nonperforming Loan: A loan on which interest or some payment due under the loan agreement is not paid as it accures.
Nominal Loan Rate
The loan rate stated on the face of the loan note, which is different from the effective interest rate. If points are charged, the effective rate will be higher.
DISCOUNT The amount of money, usually stated as a percentage, deducted from the face value of a note. The borrower receives the net amount after the discount has been deducted. The discount is computed to give the effective rates of interest ...
to refer to the annual return (income) produced by an investment, expressed as a percentage. For investment in stock it is calculated from the distributed dividends, for bonds or other interest bearing securities it corresponds to the effective rate ...
The yield on a stock is calculated by dividing the dividend by the current market price. This is also called "rate of return". Put another way, the percentage rate of return paid on a stock in the form of dividends, or the effective rate of interest ...
In the five weeks surrounding year-end 1986, after enactment of the tax reform bill, which raised the effective rate of corporate taxes, 225,000 companies elected Subchapter S status, compared with 75,000 for all of 1985.
At maturity, $10,000 is repaid, representing a $9,000 repayment of borrowed amounts and $1,000 interest. Note that the interest rate may appear to be 10% ($1,000 out of $10,000), but the effective rate is much higher ($1,000 for $9,000 = 11.11%).
concept, but most trade policy experts see little practical utility in the theory, since the many different circumstances affecting the component parts comprising most industrial products make it difficult to establish their actual effective rates.
The effective rate of interest on these Eurocredits is LIBOR plus a markup negotiated between lender and borrower.
London International Financial Futures and Options Exchange ...
 See also: Banks, Net present value, Prepayment, Yield curve, Interest rate swap
  
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